Question

Exports are per se good and import are per se bad is related to which theory

Answer 1

When the dollar depreciates, or is weak, this can lead to lower imports or goods purchased from foreign countries. On the other hand, a strong dollar decreases exports because U.S. products seem more expensive to foreign consumers.

Answer 2

The economics of supply and demand dictate that when demand is high, prices rise and the currency appreciates in value. In contrast, if a country imports more than it exports, there is relatively less demand for its currency, so prices should decline. In the case of currency, it depreciates or loses value.Apr 7, 2018